I have failed to do my tax returns. I have had my tax deductions made from my earnings though.

I have many people come to me who have not filed in a few years and they are terrified of the possible consequences. While I do not want to make light of the situation, the fact is, if you come forward and file your delinquent tax returns, the chances of any problems beyond the penalties and interest are remote. The IRS does not prosecute late filers who come forward with their returns except in rare cases.

But how far back should you go? Well, the stock answer is, as far back as you have not filed. This is naive however. How far back you should go depends on the facts and circumstances of your case. But in general, you should go back six years unless:

(1) The IRS has filed a substitute for return against you for an earlier year and the liability they have calculated is much greater than if you filed the return.

or

(2) After the returns are filed, you will need to enter into an installment agreement or want to make an Offer In Compromise. This is because they will not generally consider either one if you have returns outstanding.

It may be that you do not have to file for some years if you did not have a filing requirement. The 1040 instructions will help you determine if you have a filing requirement.

Since may owe tax after the returns are filed, I recommend you hire an experienced professional to help you file the returns and deal with IRS collection issues. It is also possible you will not owe anything if your withholding has been sufficient. You may even be due refunds. Hurry, those refunds are disallowed after three years. 2004 is expiring in less than two weeks.

You people are great! I really appreciate the advice being given. I have been very concerned about this. My reasons are not criminal. I had been bouncing from job to job for a while making little money. Skipped one year filing, then continued not filing because of the year I missed. Stupid...... I know, but I was young and took a while to grow up and get my sh!@ together. Anyway, I would like to remedy this ASAP. Any suggestions on where to find someone to help me through this??

But how far back should you go? Well, the stock answer is, as far back as you have not filed. This is naive however. How far back you should go depends on the facts and circumstances of your case. But in general, you should go back six years unless:

(1) The IRS has filed a substitute for return against you for an earlier year and the liability they have calculated is much greater than if you filed the return.

or

(2) After the returns are filed, you will need to enter into an installment agreement or want to make an Offer In Compromise. This is because they will not generally consider either one if you have returns outstanding.

Are you saying number of years to file (back taxes) should be based on how much a person owes?
Why 6 years? Is it because, it is what the IRS have on file? Rest being archieved and difficult to get to?

What would an individual with no W2s and 1099s be doing? I have read that IRS might want learn how you lived without any income.

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